Tutor Quora

ECO10250 Economics For Decision Making

Academic Anxiety?

Get an original paper within hours and nail the task

156 experts online

Free Samples

ECO10250 Economics For Decision Making

.cms-body-content table{width:100%!important;} #subhidecontent{ position: relative;
overflow-x: auto;
width: 100%;}

ECO10250 Economics For Decision Making

0 Download8 Pages / 1,771 Words

Course Code: ECO10250
University: Southern Cross University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

i.    Plot the production possibility curve for Joan.ii.     Explain the concept of increasing opportunity cost using the production possibility table and curve plotted in Q1ai above.  iii.    If the opportunity cost of Joan increasing her grade was constant regardless of how many hours she worked, what would be the shape of her production possibility curve?  Draw this graph.  Which of the two shapes would be more likely, and why? iv.    What would be happening if Joan’s combination of her grades and hours of work per week were below the curve as plotted above in Q1ai? v.    How could Joan push her combination of her grades and hours of work per week past the current curve? 

In 2017, the Sydney Morning Herald, a leading newspaper of Australia, published an article stating that various economists have provided their different overviews regarding the economic performance of Australia in 2017 through considering economic activities of previous year (Meyer 2018). According to some economists, Australia’s gross domestic product (GDP) is expected to increase in coming year due to increasing interest rates of the Reserve Bank of Australia (RBA). However, some other economists have stated that the real GDP growth of Australia did not change between 2016 and 2017, as the RBA cut its interest rates (Tradingeconomics.com 2018). Supporting this statement, other economists have stated that investment in business sectors could be reduce further due to slow increase in consumption expenditure as well as limited housing construction, which further can happen due to weak labour market and small increment in wages.
Thus, to understand about the actual economic condition of Australia, this report focuses on economic performance of Australia on August and September, 2018 for comparing it with the same of August 2017. For doing so, the report will divide the ensure discussion under four headings, which are, annual GDP growth of Australia, unemployment, inflation and trade.
Annual GDP growth of Australia:
The RBA has forecasted that both international as well as national economy can experience significant economic growth in come years, while other macroeconomic factors may remain almost stagnant. During the 1st quarter of this year, Australia’s economic growth has performed comparatively well than it was predicted. Through following this trend, the annual GDP growth of Australia becomes 3.4 percent during recent period (Hutchens 2018). In this context, strong labour market and favourable monetary policies have played significant role to influence income and consumption expenditure of this country to increase further. Moreover, investment in on-mining sectors along with housing market and public infrastructure has stimulated the aggregate demand of Australia in recent months of 2018. Thus, with the help of potential activities, the Australian economy is going to develop its economic performance further. The annual growth rate of Australian GDP n 2017 was around 2.4 percent while in third quarter, this rate was around 2.8 percent. Based on annual GDP growth of 2016 and 2017, t can be stated that the country did not experience any noticeable GDP growth rate. 
In above figure it can be seen that the economic growth of this country increased significantly during August 2017 and remained above 2.6 percent on an average (Tradingeconomics.com 2018). Hence, Australia has performed well to develop its economic growth over the year though increasing demand and household consumption in domestic market.
Unemployment in Australian economy:
During the June quarter of this year, salaries and wages in Australia has increased by 0.7 percent and has remained around 4.5 percent over the year. this in turn has increased the employment rate of this country above 4.8 percent. However, according to some economists, wage rate has remained below the expected level and consequently real wages growth has increased by 0.3% only over the year (Reserve Bank of Australia 2018). In August 2018, labour market has developed by small proportion due to increasing demand for workers in domestic market while in previous year, employment level was comparatively high (Marks 2018). However, since the last year, employment level of Australia has remained higher than the country’s average growth rate of total work force (Qian and Xing 2018). Moreover, total participation rate workers within labour force have increased further though the unemployment rate has still remained above 5 percent during August and September 2018.  
Thus, the above figure has represented that the unemployment rate in August 2018 has remained comparatively low than the same month of previous year.
Inflation rate:
To understand the present economic activity of Australia, the report has considered another macroeconomic indicator, which is, inflation rate. The country has experienced higher inflation rate during present year (Choi and Cook 2018).  For instance, country’s nominal wages have increased by 1.8 percent during June quarter while inflation rate has remained at 1.5%. Thus, the wage growth rate in real terms has become only 0.3% (Reserve Bank of Australia 2018). However, the RBA has anticipated that the inflation rate can reduce further, as the country’s administrative sector is reducing prices for the services they provide to the citizens. As a result, inflation rate can remain around 1 ¾ percent for the current period of 2018 (Bernanke, Laubach, Mishkin and Posen 2018). However, in July, this rate has increased and become 2.1 percent. In August 2017, this rate was around 2 percent (Tradingeconomics.com 2018). The chief reason behind this increasing price level is increasing prices for gas and electricity in both domestic as well as in international markets. 
According to figure 3, inflation rate of Australia decreased in August 2017 and remained between 1.8 percent and 1.85 percent. After that, the rate became stagnant at 1.9 percent during the first quarter of 2018. However, it has started to increase significantly during since the March quarter. However, due to fall in service prices, this inflation rate is expected o reduce again.
Trade of Australia:
Australia can increase its exports in recent months, especially, for the liquefied natural gas (LNG) due to its huge production. In addition to this, production of other agricultural products as well as mining industry, including iron ore and coal, can stimulate the country’s total exports by large extend (Qi and Zhang 2018). Hence, terms of trade for the country develop significantly. In 2017, the country also experienced positive terms of trade. 
According to figure 4, it can be stated that the terms of trade (ToT) of Australia decreased after the July quarter in 2017. After this phase, ToT has started to increase again and has reached 89.10 Index Points during the first phase of 2018. However, in the following quarter, this trend has started to fall again. And in July it has become 87.70 Index Points (Tradingeconomics.com 2018). However, the overall ToT has remained above 86 Index Points indicting that a positive environment for Australia to doing international trade.
Though the international trade of Australia has remained favorable over the year, the current account balance of this country has experienced deficit over the year. In the second quarter of 2018, the value of current account deficit has become AUD 13.47 billion while in the previous quarter has remained AUD 11.678 billion. This implies that the trade balance surplus on goods and services has reduced from AUD 532 billion to AUD 2.812 billion (Tradingeconomics.com 2018). In addition to this, Australian government has earned huge amount of public debt over the year, as the rate has increased steadily. In the first quarter of 2018, the country has obtained public debt above AUD 2000000 million. Moreover, it can be expected that the country’s gross external debt is going to increase further. The value of Australian dollar in terms of U.S dollar has decreased over the year. In the starting of September 2018, AUD 1 has become USD 0.72 while this exchange rate was high during 2017. Hence, decreasing value of Australian dollar in international market can create huge problems.
Explanation on three major issues of Australian economy:
The above discussion can point out three major issues that the Australian economy can experience in coming year. Moreover, the economic condition of the country for the next twelve months can also be described. The three major problems of this country are inflation, household debts and deficit in current account. According to the RBA, inflation rate is going to increase further by 2.4 percent (Hocquette et al. 2018). However, this growth could be stable in future. However, the economy can experience an uncertainty due to global inflation. This phenomenon as well as increasing GDP of Australia can cause value depreciation of Australian dollar in coming months (Ellis 2018). Moreover, increasing debt in both internal and external market along with depreciation of Australian dollar can lead the current account balance of Australia to reduce further (Forbes, Hjortsoe and Nenova 2017). Hence, it is essential for the policy makers of Australia to implement appropriate policies to control these adverse economic situations. Otherwise, the mortgage demand can increase further due to economic uncertainty and consequently the economy can experience lower rate of economic growth in future along with a higher amount of public debt.
This section describes the entire economic activity of Australia briefly. The above analysis has represented that economic growth of Australia along with its unemployment level have increased over the year, since August 2017. Moreover, the country has also experienced a favorable terms of trade. This implies that the country has huge opportunities to trade with other countries in international market. On the contrary, increasing about of debt in international market along with currency depreciation and deficit in current account balance can adversely affect the economic growth of Australia. 
Bernanke, B.S., Laubach, T., Mishkin, F.S. and Posen, A.S., 2018. Inflation targeting: lessons from the international experience. Princeton University Press.
Choi, W.G. and Cook, M.D., 2018. Policy conflicts and inflation targeting: the role of credit markets. International Monetary Fund.
Ellis, L., 2018. Where is the growth going to come from?. Economic Papers: A journal of applied economics and policy, 37(1), pp.4-16.
Forbes, K., Hjortsoe, I. and Nenova, T., 2017. Current account deficits during heightened risk: menacing or mitigating?. The Economic Journal, 127(601), pp.571-623.
Hocquette, J.F., Ellies-Oury, M.P., Lherm, M., Pineau, C., Deblitz, C. and Farmer, L., 2018. Current situation and future prospects for beef production in Europe—A review. Asian-Australasian journal of animal sciences, 31(7), p.1017.
Hutchens, G. 2018. Australia’s economy hits 3.4% annual growth rate, exceeding expectations. [online] the Guardian. Available at: https://www.theguardian.com/business/2018/sep/05/australias-economic-growth-exceeds-expectations-at-34?utm_source=esp&utm_medium=Email&utm_campaign=Guardian+Today+AU+-+collection&utm_term=284931&subid=20797742&CMP=GTAU_collection [Accessed 6 Sep. 2018].
Marks, G.N., 2018. Do the labour market returns to university degrees differ between high and low achieving youth? Evidence from Australia. Journal for Labour Market Research, 52(1), p.5.
Meyer, J. 2018. Economists deeply divided over Australia’s economic path in 2017. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/markets/economists-deeply-divided-over-australias-economic-path-in-2017-20170207-gu72ev.html [Accessed 6 Sep. 2018]. – The main article
Qi, C. and Zhang, J.X., 2018. The economic impacts of the China-Australia Free Trade Agreement-A general equilibrium analysis. China Economic Review, 47, pp.1-11.
Qian, W. and Xing, K., 2018. Linking Environmental and Financial Performance for Privately Owned Firms: Some Evidence from A ustralia. Journal of Small Business Management, 56(2), pp.330-347.
Reserve Bank of Australia 2018. Economic Outlook | Statement on Monetary Policy – August 2018 | RBA. [online] Reserve Bank of Australia. Available at: https://www.rba.gov.au/publications/smp/2018/aug/economic-outlook.html [Accessed 6 Sep. 2018].
Tradingeconomics.com 2018. Australia – Economic Indicators. [online] Tradingeconomics.com. Available at: https://tradingeconomics.com/australia/indicators [Accessed 6 Sep. 2018].

Free Membership to World’s Largest Sample Bank

To View this & another 50000+ free samples. Please put
your valid email id.


Yes, alert me for offers and important updates


Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

UploadUnique Document

DocumentUnder Evaluation

Get Moneyinto Your Wallet

Total 8 pages


*The content must not be available online or in our existing Database to qualify as

Cite This Work
To export a reference to this article please select a referencing stye below:


My Assignment Help. (2020). Economics For Decision Making. Retrieved from https://myassignmenthelp.com/free-samples/eco10250-economics/positive-terms.html.

“Economics For Decision Making.” My Assignment Help, 2020, https://myassignmenthelp.com/free-samples/eco10250-economics/positive-terms.html.

My Assignment Help (2020) Economics For Decision Making [Online]. Available from: https://myassignmenthelp.com/free-samples/eco10250-economics/positive-terms.html[Accessed 18 December 2021].

My Assignment Help. ‘Economics For Decision Making’ (My Assignment Help, 2020) accessed 18 December 2021.

My Assignment Help. Economics For Decision Making [Internet]. My Assignment Help. 2020 [cited 18 December 2021]. Available from: https://myassignmenthelp.com/free-samples/eco10250-economics/positive-terms.html.

.close{position: absolute;right: 5px;z-index: 999;opacity: 1;color: #ff8b00;}


Thank you for your interest
The respective sample has been mail to your register email id


$20 Credited
successfully in your wallet.
* $5 to be used on order value more than $50. Valid for
only 1

Account created successfully!
We have sent login details on your registered email.



Myassignment help delivers top quality assignment with maximum insights and supporting evidence. The backbone of any research paper is the research paper outline template. It decides how the research information , ideas and concepts will be organised and delivered. Our research paper outline templates are unqiue, guiding the content of the entire research paper. Our research paper outline provides the rightmost points and directions for writing introduction, methods, results and discussion. It gives enough scope for inculcating all the relevant points from contenporary researches and covers 360 degree perimeter of the topic.

Latest Management Samples

div#loaddata .card img {max-width: 100%;

MPM755 Building Success In Commerce
Download :
0 | Pages :

Course Code: MPM755
University: Deakin University

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

The process of developing a successful business entity requires a multidimensional analysis of several factors that relate to the internal and external environment in commerce. The areas covered in this current unit are essential in transforming the business perspective regarding the key commerce factors such as ethics, technology, culture, entrepreneurship, leadership, culture, and globalization (Nzelibe, 1996; Barza, 2…

SNM660 Evidence Based Practice
Download :
0 | Pages :

Course Code: SNM660
University: The University Of Sheffield

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Critical reflection on the objective, design, methodology and outcome of the research undertaken Assessment-I
Smoking and tobacco addiction is one of the few among the most basic general restorative issues, particularly to developed nations such as the UK. It has been represented that among all risk segments smoking is the fourth driving purpose behind infections and other several ailments like asthma, breathing and problems in the l…
Australia Maidstone Management Business management with marketing University of New South Wales Masters in Business Administration 

BSBHRM513 Manage Workforce Planning
Download :
0 | Pages :

Course Code: BSBHRM513
University: Tafe NSW

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

Task 1
1.0 Data on staff turnover and demographics
That includes the staffing information of JKL industries for the fiscal year of 2014-15, it can be said that the company is having problems related to employee turnover. For the role of Senior Manager in Sydney, the organization needs 4 managers; however, one manager is exiting. It will make one empty position which might hurt the decision making process. On the other hand, In Brisba…

MKT2031 Issues In Small Business And Entrepreneurship
Download :
0 | Pages :

Course Code: MKT2031
University: University Of Northampton

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: United Kingdom

Entrepreneurial ventures
Entrepreneurship is the capacity and willingness to develop, manage, and put in order operations of any business venture with an intention to make profits despite the risks that may be involved in such venture. Small and large businesses have a vital role to play in the overall performance of the economy. It is, therefore, necessary to consider the difference between entrepreneurial ventures, individual, and c…
Turkey Istanbul Management University of Employee Masters in Business Administration 

MN506 System Management
Download :
0 | Pages :

Course Code: MN506
University: Melbourne Institute Of Technology

MyAssignmentHelp.com is not sponsored or endorsed by this college or university

Country: Australia

An operating system (OS) is defined as a system software that is installed in the systems for the management of the hardware along with the other software resources. Every computer system and mobile device requires an operating system for functioning and execution of operations. There is a great use of mobile devices such as tablets and Smartphones that has increased. One of the widely used and implemented operating syste…
Australia Cheltenham Computer Science Litigation and Dispute Management University of New South Wales Information Technology 


Need an essay written specifically to meet your requirements?

Choose skilled experts on your subject and get an original paper within your deadline

156 experts online

Your time is important. Let us write you an essay from scratch

Tips and Tricks from our Blog

11174 Introduction To Management

Free Samples 11174 Introduction To Management .cms-body-content table{width:100%!important;} #subhidecontent{ position: relative; overflow-x: auto; width: 100%;} 11174 Introduction

Read More »